New bill disallows the usage of provident fund for employees of private and public organisations.
Upon the legislation of the bill by the Parliament, any employee is required to be a part of a pension scheme, except for those working in international agencies and diplomatic missions.
According to the current practice, individuals with a provident fund before 2013 can continue using similar scheme, while being given an option to be a part of pension scheme. The new bill disallowed this practice and make it mandatory for anyone to be a part of a pension scheme.
The new bill also allows pension contributions to be invested in sources other than treasury bills, in contrary to the existing practice. A Pension Trustee Board can identify investment opportunities for pension contributions, according to the bill.
Additionally, financial institutions are also required to deduct/transfer from accounts of private organizations that collect pension from their employees if they fail to deposit the money timely to the Pension Fund, the bill says.